Central American Economy: First Half of 2010

©image: SECMCA

For the time being, the region's measures of external and internal demand do not seem affected by the threat of lower growth rates for the economies of partner developed countries. Some central banks had raised their expectations but, in view of the risks, they are likely to revise their growth predictions back to original levels between 2.0% and 2.7%.

Risks to inflation have yet to appear, especially in countries with strategies to maintain it within limits. For the region as a whole, based on individual countries' national objectives, inflation is expected to end the year between 4.2% and 5.6%.

The gap in the region's balance of payments may not deteriorate as much as expected due to growth in imports being slower than for exports.

Source: Central American Executive Secretariat of the Monetary Council

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